Addressing the State of the State Address

“Nearly a year ago, on March 17, the Florida legislature voted unanimously to receive federal stimulus funds as offered under the American Recovery and Reinvestment Act of 2009 to compensate for the loss of revenues typically gathered from state sales taxes, property taxes and other financial shortfalls.

“I have been criticized as having embraced the stimulus funds as offered by President Obama. Let me assure you that I did not support the stimulus package. I accepted the federal funds out of necessity. These funds have been well spent to avoid further deterioration of state and local social structures. They have been used to sustain employment, create jobs and promote economic activity and growth.

“From data released this past week by the Council Economic Advisors, stimulus dollars have provided $20M in food stamps and $2.4M in Medicaid payments. We were able to provide $924M in financial relief to 3.7M seniors, veterans and other ‘high-need’ residents with one-time $250 payments.

“We successfully provided $3.5B in tax relief for working Floridians. We have allocated $1.6B toward transportation projects and given $1B in small business loans.

“Within the past twelve months, those federal funds have saved or created 112,000 jobs statewide, nearly 24,000 of which were teaching positions.

“Over the past year, Florida has utilized $7.7B of the $14.8B available to stave off the need to make deeper cuts in the state budget. The immediate result prevented the need for tax increases that would have otherwise led to further financial burdens to Florida families and businesses. Further cuts in the state budget will still be unavoidable.

“We must not become dependent upon Washington to solve our economic woes. We have had the benefit of stimulus funds but that safety net will be gone once the remaining $7B is exhausted.

“The scope of the financial ruin wrought upon us from the effects of the Great Recession is unprecedented. The Florida legislature must go beyond the dealings of special interest groups. We must plan for the future now to avoid a further collapse of social services and education. We must take immediate steps to bring a more diverse tax base to Florida by offering incentives to attract new business ventures within our state.

“We cannot turn away from providing a positive future for Florida families. We must secure additional revenues to replace the billions of dollars unsecured because of unrealized tax revenues.

“This is not a farfetched idea. It can work. It must work. The only way to make it work is to get Floridians back to work. That must be a focal point as Florida is faced with extended periods of lost revenues.

“Therefore, and unfortunately, spending cuts will still be necessary to achieve a balanced budget. Stimulus funds will starts running out next year, leaving deeper cuts as the main option for staving off huge deficits. Further cuts in health care, cuts to prisons and cuts to Florida universities can be softened by actions the Florida legislature must address in the coming budget talks.

“2010 is an election year and, as unpopular the thought may be, we must reconsider sales tax exemptions given to business that are no longer justified. This will be extremely unpopular but without responsible actions, we will be faced with years of budget deficits. Lawmakers could raise up to $12 billion by doing away with tax loopholes that benefit the state's wealthiest and getting rid of tax exemptions for elite businesses.

“This is desperately needed as the electorate is struggling with high unemployment and the foreclosure of their homes. Florida residents cannot afford to dig any deeper in their pockets than they already have.

“Over the long run, these businesses should expect a positive return on their investments as the unemployed are once again able to earn a living, make money and increasing their levels of disposable income to spend on their products and services.

“I commend the Florida legislature for delaying the implementation of raising unemployment compensation taxes from $8.40 to $25.20 per employee. Still, the projected shortfalls are in excess $3 billion dollars for 2010-2011 and $6 billion there afterwards. The legislature must address these shortfalls.

“I will be strongly criticized for these comments and the reactions will not be made with kind words. But, take a look at those who make accusations and see where their interests lie. Too often, those interests do not lie with the residents of Florida.

“I have based my ten years in public service to better the lives and futures of Florida residents and will continue to do so in whatever capacity Florida voters may deem befitting the needs of the state,” I might have said if I were Charlie Crist when he gave his State of the State Address.